European UCITS funds suffered net redemptions of euro 31bn in the first quarter of 2008, according to the European Fund and Asset Management Association (EFAMA).
Equity funds were hit hardest, with net outflows totaling euro 77bn, reflecting investor concerns about large stock market price declines.
Bank savings products offering competitive interest rates and/or some form of guaranteed return continued to reduce the popularity of bond funds. Meanwhile the inflows to money market funds totaled euro 82bn, a turnaround from net redemptions recorded in the previous two quarters.
A number of countries benefited from positive net sales including France, thanks to renewed appetite for regular money market funds. Elsewhere in Europe, including Hungary, Norway, Slovakia, Switzerland and the United Kingdom, positive net sales were also recorded.
The total net assets of UCITS fell by 8.0% in the first quarter to euro 5,704bn. All fund categories except money market funds experienced a fall in assets.IFAonline
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